A Case Study in Management Control Systems: Wayside Inns

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A Case Study in Management Control Systems: Wayside Inns
Immediate issues or problems
The immediate concern appears to be the idea of a proposed expansion to a hotel run by Layne Rembert. Mr. Rembert is worried because expansion at another site in Toledo has lowered the return on investment for that property; he is troubled by what the expansion will mean for his incentive compensation and for his 1992 income. As it stands, the planned expansion will be in place by the end of 1992 (“the management control process,” 566). Clearly, a decision has to be made shortly about whether the expansion is really a good idea.
Associated issues
It must be asked what other issues might impact the decision. Put simply, one issue, surely, is that the...